Michael Jackson’s children can’t receive money from late star’s estate ‘until $700,000,000 tax bill is paid’-Asyia Iftikhar-Entertainment – Metro

Michael Jackson’s children saddled with huge tax bill over ongoing IRS dispute (Picture: Getty)

Michael Jackson’s family members have been withheld from accessing the financial distributions due to a years-long dispute between the estate and the IRS.

The Thriller hitmaker’s beneficiaries Prince, 27, Paris, 26, and Bigi Jackson, 22, as well as his mother Katherine, 94, (beneficiary of a sub-trust) have been going back and forth with the IRS since the company audited the estate’s federal estate tax return.

The IRS claimed a ‘note of deficiency’ and accused the estate of ‘undervaluing its assets’ before slamming an ‘an additional $700million (£550million) in taxes and penalties’ in a May 28 filing obtained by People.

This issue was first tackled in 2021 when the estate took the IRS to tax court and won. Since then the estate has filed a motion for reconsideration over the valuation of Jackson’s Sony music catalogue, Mijac.

Until its worth is determined a value cannot be entered for the estate’s tax purposes at which point both parties can enter for a final judgment, therefore the figures might yet change.

Attorneys requested that a portion of the estate remain under administration and be distributed to Jackson’s family trust, which was denied.

The late artist’s estate has been embroiled in legal trouble since his death (Picture: Getty)

Bigi, formerly Blanket, has made headlines regarding the estate all year (Picture: Getty)

Instead, the executors, John Branca and John McClain, suggested that until the issue is resolved, the estate should provide for Michael’s kids and his mother through ‘the family allowance’.

When the singer died in 2009 the estate had been saddled with debt and near bankruptcy. Over the years the estate’s assets have brought the value up to $2billion (£1.5billion) according to an appellate brief filed by the estate in March.

The tension between Katherine and grandson Bigi over the potential sale of Jackson’s music catalogue, currently valued at $600m (£471m) has also been brewing.

Paris is also caught up in the legal nightmare (Picture: Getty)

Jackson’s mum is trying to prevent the sale of his music catalogue (Picture: Getty)

Bigi asked the court to stop the estate paying Katherine’s, 93, legal fees after she submitted an appeal regarding the sale of half of the Sony catalogue which she is firmly against, previously calling it Jackson’s ‘lifeline’.

Bigi’s attorneys reportedly told the court he doesn’t believe Katherine’s appeal will be successful, and he wanted to avoid depreciating the value of the estate with expensive legal bills.

In March, TMZ also reported that Katherine had received over $55m (£43m) since the King of Pop’s death in the form of a monthly allowance to buy and improve her home, which has a private gardener, chef, and security.

Jackson’s nephew Jaafar, Jermaine Jackson’s son, is set to play the music icon in a biopic directed by Antoine Fuqua, which is coming out in 2025.

Meanwhile, the three Jackson siblings made a rare public appearance together for the London premiere of MJ the Musical in March.

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